Said on Monday that hedge fund manager William Ackman, JC Penney Company's largest shareholder of the combined company, retailers overhaul his campaign failed, he sold his entire stake.
Ackerman's Pershing Square Capital Management Company sold 39.1 million shares, amounting to 18% of the company, Citigroup, which is currently provided by other investors shares in the company and $ 1.1 billion hedge fund said in a separate announcement .
News Ackerman, down the board two weeks ago, an increasingly larger corporate strategy rift dumped his entire stake to push Penney's stock fell 2.6% in after-hours trading to $ 13.
The sale marks the end of the three-year activity Ackerman breathe new life into Plano, Texas retailer. He recruited a new CEO commodity upgrades, simplify pricing and store more attractive to customers.
But store sales in the previous fiscal year decreased by 25% since January, the company's share price has fallen 32%.
For Ackerman's hedge fund, which has boasted in the past decade the average annual return of 20 percent, Penney investment weighing performance, prompting some institutional investors to seek to meet with the manager so that he can clarify his plans.
Ackerman has lost millions of dollars, his bet, because the first time to buy stocks when they are trading $ 20.01.
Last week, Ackerman acknowledged that retail investment is not his forte, JC Penney and classification of the company's investment objectives along the border Group and one of the company's failed bets, his fund's three "failure"
In order to rapidly get out, Ackerman relies on Citigroup bought so-called "block trades," the entire equity interest in, and then sold to other investors. Currently hedge fund managers, including George Soros (George Soros) and Richard Perry has been in JC Penney Company has a large stake. It is unclear who may purchase shares, Ackerman funds sold.
"Ackerman in order to buy his stake to influence the board of directors to make a big change, rather than as a passive investment. Now, it makes no sense to hold the position it moves on to another company," said Eric g Gordon, legal, and business professor at the University of Michigan.
The 47-year-old billionaire, leaving three years later, he established his own position, and then draw Ron Johnson joined JC Penney Company from Apple and Maintenance Company. With his vision commodity upgrades, simplified pricing, and bring back customers fragmented, Johnson was forced in April.
Familiar with his thinking, one person said, Ackerman fund has lost millions of dollars in investment and billionaires are so quickly and thoroughly quit because Penney board strategic differences.
Johnson later forced out of the company's former CEO Myron Ullman, back to Ackerman there are differences.
Last week, Penney Company adopted a one-year "poison pill" to prevent any mandatory takeover attempt by limiting a single investor's stake to 10%. Analysts generally explain policies, a move Penney Company, in order to avoid another distraction at the same time it is trying to fight to win back consumer activist after sales fell hard last year continued into the fall.



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